INCREASING THE EFFECTIVENESS OF FINANCIAL MONITORING

Abstract

Introduction of financial and information technologies,development and globalization of the world economy, opening up ofthe borders, leads to increased the financial crime related to moneylaundering. It is possible to overcome the aforementioned problemsby creating an efficient and high-quality financial security system, oneof the important elements of which is financial monitoring.The purpose of this article is to substantiate the role of financialmonitoring entities in the country's current financial security systemand to identify ways to improve their performance.The article summarizes the scientific approaches to the nature offinancial monitoring. The financial monitoring entities have beensystematized, the tasks of the activity of the primary monitoringentities and the state monitoring entities have been defined. Therights of the subjects of the financial monitoring system have beenoutlined. The performance of financial monitoring system entities hasbeen analyzed. The stages of the process of financial monitoring havebeen considered. The problems of functioning of the financialmonitoring system have been outlined. It is emphasized that theentities most at risk of being involved in fraudulent cash flow schemesare banking institutions. Proposals and tools have been provided toimprove the effectiveness of financial monitoring, in particular:improving the quality of audit of funds transferred to the authorizedcapital of entities; detection and elimination of shadow banks; thecreation of a single centralized database containing information on allsuspicious transactions and those subject to financial monitoring;systematic review of funds received from abroad in the form ofinvestments; intensifying the fight against corruption in the financialmanagement body; ensuring the interaction of controlling and law enforcement agencies with a view to combating money laundering,including the interaction of the State Financial Monitoring Service ofUkraine with the institutions of primary monitoring, first of all, bybanking institutions.